Jio Financial Raises Rs 3,956 Crore From Promoters Via Warrant Issue

Jio Financial Services Ltd. has raised Rs 3,956 crore from its promoter group after a warrants issue. The NBFC allotted 50 crore warrants worth Rs 3,956.25 crore on a preferential basis to its two promoter group entities, marking a significant capital infusion. The allotment was approved by the company’s Stakeholders’ Relationship Committee following the earlier board and shareholder approvals on July 30 and Aug. 29, respectively.

Each warrant is priced at Rs 316.50, with a 25% of the issue price paid upfront. The warrants were distributed equally between Sikka Ports & Terminals Ltd. and Jamnagar Utilities & Power Pvt. Ltd. Each entity received 25 crore warrants.

Earlier this year, it was announced that billionaire Mukesh Ambani and his promoter group will infuse Rs 15,825 crore in Jio Financial Services, which makes them hold over 51% stake in the financial services firm.

The scrip fell as much as 0.63% to Rs 309.80 apiece. It pared losses to trade 0.35% lower at Rs 310.65 apiece, as of 11:13 a.m. This compares to a 0.04% advance/decline in the NSE Nifty 50 Index.

It has fallen 11.29% in the last 12 months. Total traded volume so far in the day stood at 0.33 times its 30-day average. The relative strength index was at 39.

Only one analysts tracking the company, and they maintain a 'hold rating on the stock according to Bloomberg data. The average 12-month consensus price target implies an upside of 4.6%